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Group 6
Sole Proprietorship - Arjun Sathyanarayan A sole proprietorship is an unincorporated business that is owned by one person. It is the simplest kind of business structure. The owner of a sole proprietorship has sole responsibility for making decisions, receives all the profits, claims all losses, and does not have separate legal status from the business. If you are a sole proprietor, you also assume all the risks of the business. The risks extend even to your personal property and assets. It is easy to set up a sole proprietorship. Simply operate as an individual or as a registered, unincorporated business. If you operate as an individual, just bill your customers or clients in your own name. If you operate under a registered business name, bill your clients and customers in the business's name. If your business has a name other than your own, you'll need a separate bank account to process cheques payable to your business. Disadvantages ' *Unlimited liability *Unlimited risk *Personal assests and account isn't protected *Limited security '''Advantages ' *Maximized profit *Profit earned is not shared due to one person managing business *No tax on business entitiies '''Examples of Sole Proprietorship *Apple *Microsoft *Burger King *Mcdonalds Partnership - Alwaleed Jabasini A partnership is a business arrangement between two or more individuals. Each owner invests financially in the company, power and profits are distributed according to how much each owner originally invested. Each individual is liable for each other. Advantages of a Partnership: * two heads (or more) are better than one * your business is easy to establish and start-up costs are low * more capital is available for the business * you’ll have greater borrowing capacity * high-calibre employees can be made partners * there is opportunity for income splitting, an advantage of particular importance due to resultant tax savings Disadvantages of a Partnership: * there is a risk of disagreements and friction among partners and management * each partner is an agent of the partnership and is liable for actions by other partners * if partners join or leave, you will probably have to value all the partnership assets and this can be costly. * the liability of the partners for the debts of the business is unlimited Accounts unique to Partnership: * Cash * Bank * Capital Corporation - Jovan Zecevic A corporation is one of many ways to formally organize a business. Structuring a business as a corporation has a number of important legal requirements and consequences that impact investors. * A corporation is owned by shareholders, and their ownership is represented by shares of stock * A corporation has a board of directors, which is a group of people elected by the shareholders to oversee the corporation's management. * Shareholders have limited liability. * Legal existence: a firm can (like a person) buy, sell, own, enter into a contract, and sue other persons and firms, and be sued by them Examples of corporations: * Amazon * Johnson & Johnson * Walt Disney Company * J.P. Morgan Chase & Co Cooperative - Steven Van A co-operative is a member-owned business structure with at least five members, all of whom have equal voting rights regardless of their level of involvement or investment. All members are expected to help run the cooperative. A co-operative is a separate legal entity and members, directors, managers and employees are not liable for any debts.This business structure encourages a democratic style of management and promotes the concepts of sharing resources and delegation to increase competitiveness. Advantages: * Generally inexpensive to register. * All members must be active in the co-operative. * Members have an equal vote at general meetings regardless of their level of investment or involvement. Disadvantages: * As co-operatives are formed to provide a service to members rather than a return on investment * Members providing greater involvement or investment than others will still only get one vote. * Requires ongoing education programs for members. Examples: * Canadian University Press * Farmers of North America * Toronto Renewable Energy Co-operative * VISA Accounts Unique to Cooperative * Cash * Bank * Capital